DoT gives spectrum to BSNL for 3G

The Department of Telecommunications (DoT) has quietly allocated scarce spectrum to state-owned Bharat Sanchar Nigam Nigam (BSNL) to conduct experiments in 3G, an advanced telecom standard for carrying data and visuals at a high speed.

The out-of-turn allocation could give BSNL an unfair advantage over private telecom players, which want to launch similar services. The allocation of spectrum was mentioned in a ministry of communications & IT paper and notice that called for a meeting to discuss various spectrum related issues.

The note names only BSNL as the receipient of 5 + 5 MHz spectrum in the 2 GHz band for carrying out experiments in Pune, Chandigarh, Kolkata and Coimbatore. Experiments will be conducted by 3G equipment vendor Nokia for BSNL.

Spectrum is variuos frequency bands in which telecom companies operate. Spectrum bands required for wireless telephony are scare in India as most of it is occupied by defence and other government agencies.

Telecom companies want additional spectrum to improve the quality of services and also to launch 3G services, which will bring high-end video and data services on the mobile phone.

Most telecom companies had, over the last six months, made applications for allocation of spectrum for 3G experiments along with equipment vendors like Ericsson and Lucent.

The applicants included companies that use two dominant mobile technologies GSM and CDMA. However, the allocation of 3G spectrum to BSNL is expected to favour the GSM players.

Industry sources say that BSNL is expected to conduct its experiments with Nokia equiment. The experiments will involve testing transmission and other equipment in Indian conditions and standardising components.

In this case, Nokia will plug in its equipment into BSNL's network and run demo services with limited users to iron out glitches before large scale deployment. The process could take between 6-8 months.

As the DoT will allocate 3G spectrum simulteaneously to various telecom companies, BSNL could have a lead in launching its services. Since Nokia is also an equipment supplier to nearly all GSM-based mobile operators, companies like Airtel and Orange will also gain indirectly due to DoT largesse to BSNL.

Reliance could also benefit if it manages to get spectrum for its proposed GSM services. Says a telecom expert, "Government's move is tilted in favour of the GSM players. It is an unfair move which will kill competitive technologies."

Biggest losers will be Reliance and Tata, two large CDMA service providers. Though there are competing 3G technologies in CDMA and GSM, the ones offered by the CDMA have been found to be much more superior.